【Italy】Italian Exports Grow by 3.3%, but North-South Divide Widens

Italian exports continue to be the engines of growth, with each increasing its global market share by 0.5% year-on-year. 2025 was the year of luxury goods exports: the Made in Italy sector saw a surge in jewelry (+39%), while fashion (-13.7%) and transport equipment (-11.9%) declined. According to the ICE report, Italy is outpacing its direct EU competitors. The South underperformed, while Tuscany soared.

Italian exports are worth 643 billion euros. In 2025, foreign sales increased by 3.3%. Italy is outpacing its direct EU competitors: Germany (+0.9%), France (+2.3%), and Spain (-0.5%). There are 85,000 companies with a strong propensity for foreign trade. 51.3% of Italian products are destined for the European market. Trade with North America grew by 6.8%, the Middle East by 7.2%, and Central Asia by 6%. Sales to China fell by 6.6%. Trade in services grew more than goods, at +4.4%, bringing revenue to 148.6 billion euros. These results are recorded in the ICE report “Italy in the International Economy.” The trade balance surplus jumped to 55 billion euros, compared to 34 billion in 2024. This result, the report says, was favored by the decline in prices of imported raw materials, particularly energy. Italy’s global export market share, at current prices, remained stable at 2.8%, confirming the resilience of Italian companies despite international competition. However, at constant prices, there is a slight erosion of market share (from 2.3% to 2.2%), a sign that competition on volumes remains tight.

The Italian manufacturing sector generated a surplus of 121 billion euros. The jewelry sector, in particular, made a leap forward of 39%. On the other hand, there were significant declines in the fashion system (-13.7%) and transport equipment (-11.9%). Both sectors were affected by weak global demand and Chinese competition in the electric sector.

The territorial analysis of the ICE report reveals a two-speed Italy. While the Center recorded export growth of 4%, the South suffered a contraction of 5.4%, mainly due to the crisis in the automotive supply chain. The most dynamic region is Tuscany, with foreign trade growing by 13.6%, driven by gold and pharmaceuticals. Lombardy grew only 0.6%, holding steady thanks to ICT products directed towards Spain, compensating for losses in textiles. Exports from Basilicata (-64%) and Campania (-44%) collapsed, dragged down by the collapse in automotive production. The sharp decline in pharmaceuticals and shipbuilding strongly affected the performance of companies in Marche, which closed 2025 at -29.7%. The agri-food sector in Puglia and Campania, however, still shows strong signs of vitality.

The Italian export system rests on a solid base of approximately 84,359 “persistently exporting” companies, which alone generate 89% of total national exports. Most of these are micro and small enterprises, but the bulk of the value (over 50%) is realized by large companies. A key finding concerns integration into International Production Networks (IPNs): 85.6% of Italian exports are generated by companies that import and export intermediate goods, demonstrating how vital Italy is to global value chains. However, over 6,000 Italian companies now appear vulnerable to new US tariffs, with an exposure worth over 11 billion euros in exports to the US.

To counter this difficult scenario, the ICE Agency has intensified its commitment. In 2024, 191 million euros were invested in over 900 promotional initiatives. Digitalization has become a fundamental pillar. The TrackIT Blockchain project has been extended to track and certify the authenticity of Italian products (not just food and textiles, but now also cosmetics and furniture) to combat “Italian sounding”—unfair commercial practices that exploit the appeal of Made in Italy to market non-original products that mislead buyers. Twenty-two virtual showrooms have been created on major global marketplaces to help small and medium-sized enterprises access international e-commerce.